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GIPS Compliance

Investment Performance

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Investment Performance

Investment Performance

What is Up-Market & Down-Market Capture Ratio?

Up- and down-market capture ratios help investors assess how a strategy holds up during different market conditions. They demonstrate how…
Batting average in finance
Investment Performance

What is Batting Average in Finance?

Batting Average in investment analysis measures how consistently a strategy outperforms its benchmark. The minimum threshold for Batting Average in finance is…
Investment Performance

Analyzing Investment Performance with Alpha & Beta

Analyzing alpha & beta: Demonstrate how your active management is adding value instead of risk. Understanding alpha and beta can help you…
Investment Performance

Quality Control: How to check for errors in your investment performance

How robust is your quality control process? In light of recent investment performance troubles at PSERS, now may be a good time to evaluate your firm’s quality control procedures. Here’s what you need to know...
GIPS Compliance Investment Performance Uncategorized

FINRA Rule 2210: How to calculate IRR consistent with GIPS

FINRA now requires IRR to be calculated according to the GIPS® Standards. But how do you calculate and present a GIPS compliant IRR?
Investment Performance

The SEC’s New Advertising Rule – Presenting Performance

Wondering how to present performance under the SEC's New Advertising Rule? Do you need to use composites? The answer is…
Investment Performance

When to Use Time-Weighted Return (TWR) vs. Money-Weighted Return (MWR)

When should you use a TWR and when is it appropriate to use a MWR (IRR)?
Investment Performance

What is the Information Ratio?

The Information Ratio demonstrates a strategy's excess return, scaled by risk. Rather than using total risk or systematic risk, the Information Ratio uses…
Investment Performance

What is the Sortino Ratio?

The Sortino Ratio is similar to the Sharpe Ratio as it is used to compare and rank managers with similar strategies. However, unlike Sharpe, the Sortino Ratio measures the incremental average strategy return over a minimum acceptable return per unit of downside risk rather than total risk. Because of this difference, the Sortino Ratio may […]